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     T R O U B L E D   C O M P A N Y   R E P O R T E R

                             A S I A   P A C I F I C

           Friday, December 15, 2000, Vol. 3, No. 244

                                    Headlines


* A U S T R A L I A *

F2: Alliance formed for lossmaker
LIBERTYONE: Organizational web needs unraveling
PRESLITE AUSTRALIA PTY: Appoints voluntary administrator
STP CONSOLIDATED: Still eluding creditors


* C H I N A  &  H O N G  K O N G *

CASH ON-LINE: Posts HK$78M net loss for Jan.-May
CHINA SCI-TECH HOLDINGS: Posts $318M half-year loss
GUANGDONG INT'L TRUST: To sell building to pay debt
NINGBO INT'L TRUST: Insolvent company shut down
SUN TELEVISION: Posts 1H loss


* I N D O N E S I A *

ASPAC PERMAI: IBRA inks MOU with it
BUKAKA GROUP: Seeks debt payment suspension
MOHAMAD HASAN: IBRA reaches MOU with 4 of his debtors
PT CHANDRA ASRI: Gets deadline extension
PT HOTEL SAHID: Clarifies bankruptcy charge
PT INDUSTRI PESAWAT TERBANG NUSANTARA: Debt pacts signed
PT SEAMLESS PIPE INDO.: IBRA's US$174M restructure approved
PT TIRTAMAS COMEXINDO: Court delays bankruptcy decision


* J A P A N *

MITSUI CORP.: To seek massive debt waiver


* K O R E A *

DAEWOO HEAVY INDUS.: Banks swap W2.2T in debt for equity
DAEWOO MOTOR: GM puts off decision indefintely
DAEWOO MOTOR: To seek more job cuts, savings
DAEWOO SHIPBUILDING: Banks swap W2.2T in debt for equity


* M A L A Y S I A *

ABDUL RASHID HUSSAIN: Set to lose $11M from CCM sale
EG.COM: Announces RM20M bond default
FABER GROUP: Posts 3rd consecutive annual net loss
UNITED ENGINEERING MALAYSIA: Stock drops to 2-yr low


* P H I L I P P I N E S *

PETRON: Posts 9-mo. loss, cuts capex money
PHILIPPINE AIRLINES: Losses P417M in October
PHILIPPINE NAT.BANK: PDIC gives till Jan.7 to pay P10B loan
PILIPINAS SHELL CORP.: Posts 9-mo. loss, cuts capex money


=================
A U S T R A L I A
=================

F2: Alliance formed for lossmaker
---------------------------------
Newspaper publisher John Fairfax Holdings Ltd's loss-making
online unit f2 and investment house Macquarie Bank Ltd will
form an alliance in which each will invest A$15mil to
A$20mil in a financial services joint venture.

The funding over the next two to three years for the
Internet venture, offering investment products and
services, will be in cash and kind.  The companies did not
disclose the cash component.

"We have identified online financial services as an
attractive growth area for f2," Fairfax chief executive
Fred Hilmer said in a statement on Wednesday.

Macquarie managing director Allan Moss said: "The effective
use of online distribution of financial products over the
next few years will be a key in determining the success of
Australia's retail financial institutions."

Losses at f2 totaled A$40.7 million for the year ended June
30, 2000, and its parent has forecast similar losses for f2
in 2000/01. (Star Online, Reuters 14-Dec-2000)

LIBERTYONE: Organizational web needs unraveling
-----------------------------------------------
LibertyOne administrator John Gibbons says he will have to
work through the company's "complex web" of 30 subsidiaries
to determine whether creditors will be repaid.

Mr Gibbons, from accounting firm Ernst & Young, has
established a LibertyOne committee after a creditors
meeting yesterday.  He will meet with some creditors
tomorrow to establish separate committees for the company's
subsidiaries.

"What we are trying to identify is which of the companies
have assets and which have liabilities," he said.

Included in the list of six representatives on the
creditors committee is one from iReality, the Hong Kong-
based group that claimed it was not consulted when
LibertyOne's directors decided to appoint the administrator
last Wednesday.  Other LibertyOne credit committee members
represent Deloittes, Monet Asia Pacific - which is under
the separate administration of Grant Thornton - two
employee representatives, and Jade Fund.

Speculation is mounting that iReality will be a buyer of
selected assets in LibertyOne after having its proposed
recapitalisation allegedly thwarted. Mr Gibbons would not
confirm whether the Hong Kong group expressed interest in
any of the assets such as web mastering group Zivo.

"Zivo has been the focus of quite a bit of our attention
because that's the company that has the majority of the
employees here in Australia," he said.

LibertyOne, which was floated in December 1998, is the
latest in a series of high-profile dotcom companies to end
up in administration and follows in the footsteps of Eisa.
LibertyOne is believed to have about $1 million in cash.
Mr Gibbons said he had been inundated with offers for the
operating subsidiaries left in LibertyOne.

"Some of these people have already previously been looking
at LibertyOne prior to our appointment ... some of them
have re-emerged," he said.  "Some of them can smell a
bargain. In this case there are companies that are quite
independently operating at the moment."

The second creditors meeting, likely to take place in mid-
January, will decide whether to take LibertyOne into
liquidation or operate under a deed of arrangement.
Mr Gibbons said one of the complicating factors was how
far, if at all, LibertyOne provided guarantees for
liabilities to creditors.

It was too early to say whether LibertyOne directors were
involved in any insolvent trading. That would be one of the
subjects of a report which will be released at the second
creditors meeting, he said.

Mr Gibbons said some of LibertyOne's other major assets not
included in his administration are Zivo's New Zealand and
Hong Kong subsidiaries and a 50 per cent shareholding in
Satellite Music.  The New Zealand company has about 100
staff and a separate management team.

Zivo in Australia has about 65 employees and LibertyOne 13.
"That company (Zivo NZ) seems to be operating success-
fully," he said. "It has some large corporate clients."
(The Australian 14-Dec-2000)

PRESLITE AUSTRALIA PTY: Appoints voluntary administrator
--------------------------------------------------------
Autoindustries Ventures Bhd's subsidiary, Preslite
Australia Pty Ltd, appointed a voluntary administrator on
Dec 5 following its failed attempt to salvage the company.

In a statement to the Kuala Lumpur Stock Exchange,
Autoindustries said the voluntary administrator,
ricewaterhouseCoopers, now controlled the business,
properties and affairs of Preslite.

"The directors of Preslite has informed the board of
directors of AIV (Autoindustries) that efforts to negotiate
a corporate exercise to salvage Preslite were
unsuccessful," it said.

Autoindustries said the directors of Preslite had also
resolved that the company was insolvent or was likely to
become insolvent.  In a letter to Preslite's creditors, the
voluntary administrators said their objectives were to
"maximise the chances of Preslite or as much as possible
its business continuing in existence." (The Edge Daily 14-
Dec-2000)

STP CONSOLIDATED: Still eluding creditors
-----------------------------------------
Creditors seeking to wind up the business of Newcastle
company STP are having trouble pinning down the actual firm
with whom they have been doing business. Metalcorp, which
is owed $40,000 by Steel Tank and Pipe, was yesterday
unsuccessful in its application in the Supreme Court to
liquidate STP Consolidated.

Metalcorp's solicitor David Brooks says his client was
unaware that directors, the Weeks brothers, had transferred
operations to another company, STP Manufacturing.

"The invoicing had occurred originally through Steel Tank
and Pipe consolidated, what apparently has been argued is
that the invoices should have been payable to a different
company in that particular group," he said.

Mr Brooks says further action will start within days on
behalf of another group of Newcastle creditors who are owed
more than a $1 million. (ABC Online News 14-Dec-2000)


==============================
C H I N A  &  H O N G  K O N G
==============================

CASH ON-LINE: Posts HK$78M net loss for Jan.-May
------------------------------------------------
CASH On-line Ltd., a spin-off from Celestial Asia
Securities Holdings Ltd., recorded a net loss of HK$78
million in the first five months of this financial year
ended May 31. That was up markedly from a net loss of HK$17
million for the entire year 1999.

According to Bankee Kwan, company chairman, the increase in
net loss was due to heavy expenses for advertising, which
totaled HK$55.34 million for the five-month period through
May. Kwan expected such expenses to decline in the second
half of 2000. Revenue for the period totaled HK$24.2
million, 14 percent higher than for all of 1999.

In 1999, Cash Online posted a loss of HK$16.67 million for
the year, while in 1998, its loss for the year totaled
HK$1.49.

CHINA SCI-TECH HOLDINGS: Posts $318M half-year loss
---------------------------------------------------
China Sci-Tech Holdings Ltd recorded a $318 million loss
for the six-month period ended Sept. 30, up nearly 900
percent from a $36.68 million loss for the same period a
year earlier. Turnover was recorded at $6.55 million, and
loss per share was 5.47 cents. No dividend will be
distributed.

GUANGDONG INT'L TRUST: To sell building to pay debt
---------------------------------------------------
A building belonging to Guangdong International Trust and
Investment Corp (Gitic) will be put up for sale to pay off
the debts of the bankrupt firm. The property to be sold is
the Guangzhou Trade Centre, which for many years hosted the
annual Guangdong Trade Fair, once China's biggest foreign
trade fair.

"The building has a high profile. Many Chinese leaders have
visited it," Zhang Zhiguang, general manager of Guangdong
Jingmao Auction said, declining to estimate the building's
value.  According to the Guangzhou Daily, the building and
some adjoining facilities and parking areas are worth about
500 million yuan (about HK$468.4 million).

NINGBO INT'L TRUST: Insolvent company shut down
-----------------------------------------------
China has shut down Ningbo International Trust and
International Corp (Nitic) because it cannot repay debt, a
central bank official in the eastern city said on Thursday.

"Nitic was closed down on November 30 because mismanagement
and operation irregularities have pushed the company into
serious financial difficulties," an official at the
People's Bank of China in Ningbo, Zhejiang province, said.
"The company's assets are deeply insufficient to repay
debts."  He declined to give figures.

Nitic has some outstanding foreign debt, the official said,
but did not elaborate. Nitic was unavailable for comment.
The official said the insolvent trust, one of many mainland
Itics that have struggled to repay debt since the closure
of Guangdong province's Gitic, was now under liquidation.

On Thursday, Shanghai-listed property and hi-tech
conglomerate Ningbo United Group said it might not be able
to collect about six million yuan (HK$5.6 million) in
deposits at Nitic.  The company said in a statement it had
made full provisions for an additional 4.4 million yuan in
long-term investments in the trust.

Gitic's collapse sparked a severe credit crisis in China's
trust sector and triggered an industry crackdown that led
the government to shut down many trust firms, nearly all of
them domestic borrowers.  The central bank plans to cut the
number of Itics to around 40, down from more than 200 at
their height before Gitic's collapse. State media has said
a draft plan to reform the Itics should be approved by
Beijing before the end of the year. (South China Morning
Post 15-Dec-2000)

SUN TELEVISION: Posts 1H loss
-----------------------------
Sun Television posted a net loss of HK$63.1 million for the
first half of this financial year, up from a loss of
HK$8.04 million for the same period a year earlier.


=================
I N D O N E S I A
=================

ASPAC PERMAI: IBRA inks MOU with it
-----------------------------------
On December 8, IBRA signed a Memorandum of Understanding
for the debt restructuring of Aspac Permai. The scheme for
settlement of its debts, one of IBRA's the Top 50 obligors,
is:
* Tranche A: Term loan of Rp60.03 billion will be settled
within 10 years inclusive of 2 year's grace period;
* Tranche B: Convertible bond of Rp32.10 billion; and
* Tranche C: Non interest bearing debt of Rp42.10 billion.
(Indoexchange News 14-Dec-2000)

BUKAKA GROUP: Seeks debt payment suspension
-------------------------------------------
Bukaka Group founder Fadel Muhammad has appealed to Jakarta
Commercial court for a 40-day debt payment suspension on
33.5 billion rupiah owed to Bank IFI and 80 billion rupiah
in personal debt owed to the Indonesian Bank Restructuring
Agency (IBRA), according to lawyer Zen Batubara.

Bank IFI and IBRA had sought bankruptcy rulings against
Fadel Muhammad in his capacity as guarantor for Bukaka
Group. "Considering the business condition of our client,
we're appealing to creditors through the court in order to
temporarily suspend debt payments," Baturbar said.

MOHAMAD HASAN: IBRA reaches MOU with 4 of his debtors
-----------------------------------------------------
IBRA has signed memorandum of understanding with 4 debtors
under the obligor Mohamad 'Bob' Hasan. The deal terms
involve:  Debts worth $88.7 million and Rp72.8 billion
being settled within a maximum of 9 years. With the
settlement, the agency has completed debt restructuring of
19 debtors under the obligor M. Hasan, according to IBRA.
Inti Group a week earlier signed a MOU with IBRA for
restructuring Rp809.85 billion in debts.

The restructuring of Inti Group debt will be completed
through the following
scheme:
a. PT Inti Karya Megah (IKM):
Cash settlement of Rp492 million whose transfer to IBRA has
been done on December 7, 2000.
* IKM debt Rp23,389.6 million (including all asset
collateral) transferred as obligations of PT Internusa
Keramik Alamasri (INKA).

b. PT Internusa Keramik Alamasri (INKA) and PT Intikeramik
Alamasri Industri (IKAI):
* Term loan of Rp7.5 billion on account of INKA will be
settled within 3 years inclusive of one year's grace
period.
* Term loan of Rp114.57 billion on account of INKA
(including transfer from IKM) will be settled within 7
years inclusive of one year's grace period.
* Convertible bond of Rp431.64 billion on account of IKAI;
and a
* Debt-to-equity swap of Rp255.65 billion on account of
IKAI.

In addition to the deal, IBRA has received Rp3 billion
interest payment as the first phase payment, while the
second phase payment of Rp8.49 billion will be made
not later than December 22, 2000. (Indoexchange News 14-
Dec-2000)

PT CHANDRA ASRI: Gets deadline extension
----------------------------------------
PT Chandra Asri has been granted an extended deadline to
surrender more assets than owner Prajogo Pangestu had
initially offered to the government as part of the
company's debt restructuring, the Jakarta Post reported,
quoting a Financial Sector Policy Committee (FSPC)
statement.

"The additional assets offered by the shareholder of
Chandra Asri do not meet the requirements of the FSPC. So
Chandra Asri has been granted additional time to surrender
(more of) its assets," it said.

The statement was issued following a late evening meeting
between the committee and Chandra Asri officials. The
statement did not say what assets have been surrendered or
specify the new deadline. Mr Prajogo is the founder of
Chandra Asri, which owes more than three trillion rupiah
(S$549 million) to the Indonesian Bank Restructuring Agency
(Ibra).

The company also owes around US$700 million (S$1.2 billion)
to a consortium of foreign creditors led by Japan's
Marubeni Corporation. FSPC earlier reached a restructuring
deal with Mr Prajogo under which the government, through
Ibra, would own 31 per cent of the company's stakes, Mr
Prajogo 49 per cent and Marubeni 20 per cent.

Under the deal, Mr Prajogo, through his other company PT
Inter Petrindo Inti Citra (IPIC), would take over US$638.6
million of Chandra Asri's foreign debt and 120 billion
rupiah of its local debts. Coordinating Minister for the
Economy Rizal Ramli, who is also head of FSPC, had earlier
demanded that Mr Prajogo provide his personal assets to
Ibra as part of the restructuring deal.

Mr Prajogo holds shares in a number of companies including
PT Tri Polyta and timber companies PT Barito Pacific and PT
Tanjung Enim Lestari. Separately, Ibra has raised 16
trillion rupiah in revenue by the start of December,
drawing closer to a target of 18.9 trillion rupiah for the
truncated 2000 fiscal year. The official Antara news agency
quoted Ibra chairman Edwin Gerungan as announcing the
figure. (Business Times 14-Dec-2000)

PT HOTEL SAHID: Clarifies bankruptcy charge
-------------------------------------------
PT Hotel Sahid Jaya International (SHID) clarified the
bankruptcy charge brought by its associate, PT Trakindo
Utama. The company doubted the amount of debts stated in
the bankruptcy petition handed in by Trakindo to Central
Jakarta Special Commercial Court on Dec. 6.

"The amount of debts is yet to be determined as it is still
calculated. That way, the amount stated in the petition is
a one side note," the management of Hotel Sahid explained
to the JSX today.

They also mentioned that the amount is not entirely correct
because after the inventory check, there turned out to be
some missing goods. However, the management confirmed that
Hotel Sahid had good intention to pay the debts to
Trakindo.  "With the petition, Sahid will still be
responsible and deal with the matter thoroughly."

Trakindo filed bankruptcy petition against Hotel Sahid as
it has failed to pay the debts. Based on the company's
record, the amount of debts of Hotel Sahid to Trakindo as
of 19 November 2000 was of Rp837.86m. Previously, Trakindo
had also put lawsuit against Sahid for working payment
in the amount of Rp738.85m via Indonesian National
Arbitrate Bureau (BANI).

On October 19, 1999, Hotel Sahid was asked to pay Rp748.09m
debts to Trakindo, Rp9.24 of which was arbitrate fee.
According to Trakindo attorney, Ricco Akbar, Hotel Sahid
had never had good intention to pay the debts as it never
even tried to cancel out the decision. Hotel Sahid also
owed money to other companies, such as PT Korra Antarbuana,
PT Inti Era Cipta, PT Plammeka Selaras and PT Surya
Pertiwi. (Indoexchange News 14-Dec-2000)

PT INDUSTRI PESAWAT TERBANG NUSANTARA: Debt pacts signed
--------------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) has signed
a restructuring agreement for cash loan facilities of PT
Industri Pesawat Terbang Nusantara (IPTN) totaling
Rp1,872.435 billion on December 11, 2000.

IPTN, one of the debtors under obligor Pakarya Industri,
has agreed to settle its debt by:
* Cash settlement of $13 million;
* Debt-to-equity conversion (unsustainable debt) totaling
Rp1,769.21 billion;
* Another agreement for non-cash loan facility worth
Rp1.298.53 billion will be signed on third week of
December, IBRA said in a statement issued Wednesday.
(Indoexchange News 14-Dec-2000)

PT SEAMLESS PIPE INDO.: IBRA's US$174M restructure approved
-----------------------------------------------------------
The Financial Sector Policy Committee, a government team
supervising the Indonesian Bank Restructuring Agency
(IBRA), has approved a US$173.7 million restructuring plan
of Bakrie Group unit PT Seamless Pipe Indonesia.

IBRA said the total debt will be restructured into 10-year
term loans of US$38.09 million with a five-year grace
periods, US$44.42 million in mandatory convertible
bonds, US$25.39 million in convertible bonds and US$19.06
million in a debt-to-equity swap.

The mandatory convertible bonds will converted when
Seamless Pipe merges with PT South East Asia Pipe
Industries. IBRA is to control a 45 percent stake in the
merged company, with the merger being completed in about 12
months. It's intended that the merged company then go
public in 2004.

PT TIRTAMAS COMEXINDO: Court delays bankruptcy decision
-------------------------------------------------------
Indonesia's commercial court delayed its decision on
whether to declare PT Tirtamas Comexindo, a trading company
owned by a relative of former President Suharto, bankrupt.

A panel of judges declined to pronounce the firm bankrupt
even though its creditors, including the Indonesian Bank
Restructuring Agency, PT Bank Mandiri and Credit Lyonnais
SA, rejected its proposal for the settlement of some 1.6
trillion ($170 million) in debt.

"This company must be declared bankrupt because the
composition plan is the same one that was proposed to the
creditors before," said Robertus Bilitea, IBRA's head of
litigation. "Based on the law, if most of the creditors
reject the composition plan, the debtor is automatically
bankrupt."

The case underscores the difficulty creditors face in
recouping the money they are owed through the Indonesian
legal system, especially when debtor companies with
political connections are involved. This latest instance
will once again undermine the confidence of foreign
investors in the country's institutions and threaten
financial support supplied by the International Monetary
Fund and other donor organizations.

In March, the court granted Tirtamas a six-month payment
freeze on its debt. That followed a 45-day temporary
payment suspension, after the Indonesian Bank Restructuring
Agency sued the company for bankruptcy over $106 million it
is owed.

"The debtor (Tirtamas) has shown goodwill to complete debt
restructuring, and IBRA has failed to verify the debts,"
presiding Judge Mahi Soroinda Nasution ruled at the time.

Tirtamas presented the same debt restructuring proposal,
including offering creditors unpaid receivables from
overseas customers, Bilitea said. When IBRA and the other
creditors rejected the plan, the panel of judges hearing
the case said Tirtamas should be given another chance to
appease its creditors.  Though IBRA on Monday won an appeal
it filed contesting that ruling, the judges said they would
not issue a bankruptcy order until next week.

"This is amazing us," said Bilitea. "We're going to file a
protest to the supreme court, to whatever agencies in
Indonesia share our view on this." (Bloomberg 15-Dec-2000)


=========
J A P A N
=========

MITSUI CORP.: To seek massive debt waiver
-----------------------------------------
Japanese general contractor Mitsui Construction Co. plans
to ask a dozen financial institutions to forgive 120
billion to 150 billion yen in loans. The company is in
negotiations with Sakura Bank, its main creditor bank, for
a debt waiver.

Mitsui Construction aims to amass a total of 165 billion
yen through debt waivers and a capital reduction to dispose
of 170 billion to 180 billion yen in losses in this
financial year ending March 31, 2001. In addition to Sakura
Bank, the financial institutions believed to be recipients
of the debt waiver requests also include Chuo Mitsui Trust
and Banking Co.

Mitsui Construction debts outweighed assets by 88.3 billion
yen on a group basis as of Sept. 30, with its consolidated
interest-bearing debts standing at some 443 billion yen.
The company plans to propose a reconstruction program by
the end of the year that will include cuts in the work
force and a consolidation of related companies.

After reducing its capital, Mitsui plans to ask its main
shareholders - including real estate developer Mitsui
Fudosan Co. and trading house Mitsui and Co. -- to assist
in replenishing it.


=========
K O R E A
=========

DAEWOO HEAVY INDUS.: Banks swap W2.2T in debt for equity
DAEWOO SHIPBUILDING: Banks swap W2.2T in debt for equity
--------------------------------------------------------
Korean creditor bankss swapped 2.205 trillion won ($1.85
billion) in debt for equity in two units of the failed
Daewoo Group on Thursday as part of the banks' plans to
sell the firms.

"Daewoo Heavy Industries & Machinery's lenders swapped
1.035 trillion won in debt for equity," a company official
said.  Daewoo Shipbuilding & Marine Engineering's creditors
swapped 1.17 trillion won in debt for equity, another
company official confirmed.

Creditors led by Korea Development Bank plan to list both
companies on the Korea Stock Exchange later this month.
Daewoo Shipbuilding is the world's second largest
shipbuilding company while Daewoo Heavy specialises in
construction equipment.

The firms were spun off from Daewoo Heavy Industries in
October as creditors supporting them sought to divide
operations to make selling them easier.  Creditors rescued
12 Daewoo firms in August 1999 and have since sought to
restructure debt and sell companies and assets from the
remains of what was the country's second largest
conglomerate. (Reuters 14-Dec-2000)

DAEWOO MOTOR: GM puts off decision indefintely
----------------------------------------------
Further clouding the outlook for Daewoo Motor, General
Motors, the sole negotiating party in the bidding for
Daewoo, said that it may give up its takeover attempt for
the Korean automaker, due to its own financial troubles.

Shortly after GM's announcement of self-rescue measures
featuring layoffs of 6,500 workers and the closure of a
British plant, GM Korea said that the company will make its
final decision only after Daewoo is officially put under
court receivership, slated for the end of the 2001 first
half.

"GM will not take any action towards Daewoo Motor before
the court's final ruling on its receivership," said GM
Korea Vice President Lee Kay-sup. "We have to closely watch
the changing situations at Daewoo prior to the court
receivership ruling," he added, denying his earlier remarks
that GM was due to reveal its official position at the
Detroit Motor Show in early January.

The court in Inchon, host to Daewoo's main plant, said that
its formal ruling on receivership will come by the end of
next June. Lee stressed that GM remains interested in
Daewoo, but industry analysts say that GM's decision to
defer its decision to the second half of next year means it
is rapidly losing interest.

GM President & CEO Richard Wagoner said in an interview
with the Korean press in Paris in September that GM's final
stance on Daewoo will come before the end of this year at
the latest.

"GM has once again postponed its decision on Daewoo by six
months, apparently hit by its own worsening financial woes.
Moreover, the U.S. company has steadily expanded equities
in its Japanese affiliates, indicating its waning interest
in Daewoo," said a Samsung Securities analyst. "Similar to
the situation leading to Ford Motor's pullout from talks to
buy Daewoo, GM is plunging deeper into internal financial
troubles."

Meanwhile, Daewoo's labor union warned that it will resume
its struggles in protest of creditors' attempts to force
unilateral restructuring plans and delays in financial
assistance. It hinted it likely will shift to a hardline
stance in protest of the management's unilateral
restructuring moves and delayed payments of overdue wages,
threatening to derail the court's effort to normalize the
bankrupt automaker for its early sale to a foreigner
company.

"Since the creditors haven't followed up on their
agreements with the union on fund assistance and back pay,
we are going to form a special committee to turn the union
into a protest force," Choi Jong-hak, a union spokesman,
said.

The union plans to hold a massive protest rally in front of
the offices of Daewoo Motor's main creditor, Korea
Development Bank, this afternoon. It will be joined by the
labor unions of Daewoo's auto parts suppliers. Daewoo Motor
is pushing to cut its output for next year to 560,000
units, or an annual turnover of 4.8 trillion won. It also
plans to lay off about 7,000 of its 19,000-strong
workforce. (Korea Herald 14-Dec-2000)

DAEWOO MOTOR: To seek more job cuts, savings
--------------------------------------------
Bankrupt Daewoo Motor Co. said Wednesday it would seek even
deeper job and budget cuts as part of its battle for
survival and to help secure a possible takeover by General
Motors Corp. A Daewoo Motor spokeswoman said the firm,
which was declared insolvent last month, would seek to
raise an additional one trillion won (840 million dollars)
through the new restructuring plan.

The cutback plan includes 6,846 job cuts and reduced wages,
which would save 300 billion won, as well as other cost
savings measures. Other reports said Daewoo Motor also
planned to drastically cut car production. The company
previously announced 3,500 job losses from the 17,000
production workers, but said the extent of layoffs is yet
to be decided and there would be negotiations.


===============
M A L A Y S I A
===============

ABDUL RASHID HUSSAIN: Set to lose $11M from CCM sale
----------------------------------------------------
Malaysian banker Abdul Rashid Hussain is set to lose 43
million ringgit ($11.3 million) from the sale of a 12.9
percent stake in Chemical Company of Malaysia Bhd. to Pan
Malaysia Corp.

Pan Malaysia, a maker of chocolate products and operator of
department stores, said in a statement its wholly owned
unit Lembaran Megah Sdn. will buy the stake from Dimensi
Bersatu Sdn., controlled by Rashid, for 105.8 million
ringgit. That's 29 percent lower than the 149 million
ringgit Dimensi paid when it bought the stake in March.

Pan Malaysia's shareholding in CCM, as the agrochemical
maker is known, will rise to 23 percent after the purchase,
making it the second-largest owner after Permodalan
Nasional Bhd., a Malaysian state-controlled fund.

"The proposed acquisition is expected to be completed by
the first quarter of 2001," Pan Malaysia said.

The purchase is part of Pan Malaysia's plan to invest in
new businesses to boost earnings after it sold its cement
operations to Malayan Cement Bhd. for 1.2 billion ringgit
in Dec. 1998.  Rashid, executive chairman of Rashid Hussain
Bhd., which owns the country's third-largest banking group
and fifth- biggest brokerage, was unavailable for comment.
(Bloomberg  15-Dec-2000)

EG.COM: Announces RM20M bond default
------------------------------------
EG.com Bhd announced it would not be able to redeem RM20
million in bonds with warrants issued on Dec 15, 1995, that
are set to mature today. In a statement, the company said
it was negotiating with a commercial bank to obtain a RM20
million bridge facility for settling whatever amount might
be due to the guarantor bank in the event of a payout.

FABER GROUP: Posts 3rd consecutive annual net loss
-------------------------------------------------
Faber Group Bhd, hotel arm of Renong Bhd, Malaysia's
biggest industrial group, posted a loss of RM132.4 million,
or 36 sen a share, for the year ended June 30 -- its third
consecutive year of losses.

Operator of hotels including the Sheraton Imperial in Kuala
Lumpur, Faber owes creditors some RM1.8 billion, according
to its latest annual report. Faber sold RM1.56 billion
(S$712 million) of bonds and RM233.7 million of loan stocks
to repay money owed to creditor banks.

The company reported it would complete debt rescheduling by
the end of the month, which would bring it closer to having
its shares resume trading on the Kuala Lumpur Stock
Exchange after trading was suspended Nov 17 to allow Faber
to proceed with a plan of reducing its share capital by
half. The stock last traded on Nov 17 at 57 sen.

UNITED ENGINEERING MALAYSIA: Stock drops to 2-yr low
----------------------------------------------------
Investors continued to punish United Engineers Malaysia for
failing to force its boss Halim Saad to honour a share
buyback agreement, shares falling in trading another 24 sen
to reach its two-year low of RM3 yesterday.

On Tuesday, UEM share price tumbled 38 sen or 10.5 per cent
to RM3.24. The company now is capitalised at a mere RM2.5
billion (S$1.1 billion) against its peak of RM9.1 billion
earlier this year. For the first time in recent years,
UEM's capitalisation is now lower than parent Renong's
RM2.9 billion.

Renong managed to regain lost ground yesterday, inching up
2 sen to RM1.22. The market was still seething over the
fact that UEM has given Mr Halim another 15 months to buy a
32.3 per cent stake in Renong from UEM for RM3.17 billion
despite repeated assurance that the original pledge will be
honoured. Mr Halim, who controls Renong and UEM, has now
promised to cough up the full amount by May 14, 2002,
instead of Feb 14, 2001. He maintained that he will honour
the put option granted in 1998.

"Of course I want to pay. If I did not want to pay why
should I be willing to offer RM300 million in interest
payment," the Renong executive chairman told The Star
newspaper. "I have no intention not to honour this
obligation, that is why I came up with an offer."

However, UEM managing director Ramli Mohamad has failed to
assure investors that the payment under the new agreement
will be in the form of cash. "We believe Halim has the
resources ... how he does it is up to his ingenuity,"
he told a group of analysts and members of the local media
on Monday.

Analysts said the uncertainty will continue to rattle UEM's
minority shareholders, who have been bearing the brunt of
the Renong group's debt restructuring exercises in the last
two years. (Business Times  14-Dec-2000)


=====================
P H I L I P P I N E S
=====================

PETRON: Posts 9-mo. loss, cuts capex money
PILIPINAS SHELL CORP.: Posts 9-mo. loss, cuts capex money
---------------------------------------------------------
Most of the big players in the oil industry plan to cut
back in their capital expenditure programs due to losses
totaling 4 billion pesos to date this year.

Petron Corp. plans to forego many of its capital projects,
cutting the money budget for them by 450 million pesos.
Pilipinas Shell Corp, meanwhile, slashed its capex monies
by 30 percent.  Petron Corp. recorded a 1.35 billion peso
loss for the first nine months of this financial year,
while Pilipinas Shell posted a nine-month pre-tax loss of 8
million pesos.

PHILIPPINE AIRLINES: Losses P417M in October
--------------------------------------------
Philippine Air Lines (PAL) posted a net loss of 417 million
pesos in October, twice as much as the 202.5 million peso
loss for the same period the previous year. The company
attributed the rise mainly to increased fuel prices. The
national carrier generated 2.9 billion pesos in revenue
with expenses amounting to 2.84 billion pesos.

PHILIPPINE NAT.BANK: PDIC gives till Jan.7 to pay P10B loan
-----------------------------------------------------------
The Philippine Deposit Insurance Corporation ( PDIC)
granted the request by Philippine National Bank (PNB) for a
three months extension until Jan. 7 to pay a 10 billion
peso emergency loan extended on last October.

The 10 billion peso loan is part of a total of 25 billion
pesos extended to the bank, with the remainder given by
Bangko Central ng Pilipinas (BSP), which has not decided
whether to join PDIC's move. The Philippine Star reported
that PDIC president Norberto Nazareno said PNB will be
charged one percentage point over the 91-day treasury bill
rate. The loan will be used to finance its rehabilitaion
plan.

Observers consider the 25 billion peso loan as a crony deal
since PNB has the highest level of bad loans among
commercial banks in the Philippines. The bank experienced
huge withdrawals on the months September and October but
one analyst noted they came from big accounts. PNB
formulated a rehabilitation plan which calls for the
emergency loan to be converted into equity.

BSP Governor Rafael Buenaventura said the central bank does
not favor PNB's proposal, even though the bank holds 16
percent of the 42 billion pesos in insured deposits, 33
billion pesos in government deposits and 6 billion pesos in
equity.


S U B S C R I P T I O N  I N F O R M A T I O N

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